Markets fell more than half a per cent; Sensex declines 372 points & Nifty ends at 17,765

Domestic equity benchmarks ended with significant cuts on Thursday, November 18, 2021, mirroring the weakness in their global peers. The S&P BSE Sensex tumbled 372.32 points, or 0.62%, to 59,636.01. The Nifty 50 index lost 133.85 points, or 0.75 per cent, to 17,764.80. In the sectoral index, Nifty Bank also fell 65.30 points, or 0.17 per cent, to end at 37,976.25.

The broader markets at the BSE underperformed the Sensex with S&P BSE MidCap and S&P BSE SmallCap losing 1.68 per cent and 1.52 per cent, respectively.

The market breadth was weak. On the BSE, 1045 shares rose and 2282 shares fell. On the Nifty 50 index at the NSE, seven shares rose while 43 shares declined. The top five gainers on Nifty were SBI (up 1.04 per cent), IOC (up 0.58 per cent), HDFC Bank (up 0.50 per cent), Power Grid (up 0.50 per cent) and Reliance (up 0.37 per cent). The top five losers were Tata Motors (down 3.81 per cent), M&M (down 3.50 per cent), Tech Mahindra (down 3.31 per cent), HCL Technologies (down 2.99 per cent) and Larsen & Toubro (down 2.91 per cent).

Two Listings: Paytm & Sapphire Foods India

Paytm IPO Listing: The shares of One 97 Communications Limited, the parent company of India's leading digital financial services company, Paytm, which made a weak debut on the bourses, NSE & BSE, today closed 20 per cent lower at Rs 1,560 per share against its listing price of Rs 1,950 per share. It opened at Rs 1,950 per share at NSE at a discount of 9.3 per cent over the issue price of Rs 2,150 per share. At the BSE it opened at Rs 1955 per share, a discount of 9.06 per cent against the listing price. The initial public offering (IPO) of Paytm was subscribed 1.89 times on Wednesday, the third and the final day of bidding. The Qualified Institutional Buyers (QIBs) portion of the public issue was subscribed 2.79 times, while the Non Institutional Investors (NIIs) and Retail Individual Investors (RIIs) portions were subscribed 0.24 times and 1.66 times, respectively. The company has fixed the price band at Rs 2,080-2,150 per share for the offer as it had plans to raise around Rs 18,300 crore from the issue.

Sapphire Foods IPO Listing: The shares of Sapphire Foods India, a franchise operator of KFC and Pizza Hut restaurants, that made a strong debut on the bourses, NSE & BSE, today closed 9.06 per cent lower against the listing price of Rs 1,350 per share. It opened at Rs 1,350 per share at NSE at a premium of 14.4 per cent to issue a price of Rs 1,180 per share. At the BSE, it opened at Rs 1,311 per share at a premium of 11.10 per cent against the listing price. The initial public offering (IPO) of Sapphire Foods India Limited was subscribed 6.62 times on Thursday, the third and the last day for bidding. The Qualified Institutional Buyers (QIBs) portion was subscribed 7.50 times, while the Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) were subscribed 3.46 times and 8.70 times, respectively. Sapphire Foods had fixed the price band of the issue at Rs 1,120-1,180 per share as it had plans to raise up to Rs 2,073.25 crore through the issue.

IPO Update: Go Fashion India

Go Fashion (India) Limited IPO: The Initial Public Offering (IPO) of Go Fashion (India) Limited, a company that runs one of India's largest women's bottom-wear brands, was subscribed 6.87 times by the day end on Thursday, the second day of bidding. The Qualified Institutional Buyers (QIBs) portion was subscribed 3.24 times while Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) portions were subscribed 2.30 times and 24.64 times, respectively. The issue will close on Monday, November 22, 2021, as the market will remain closed on Friday for Gurunanak Jayanti. The price band for the initial public offering (IPO) is fixed at Rs 655-690 per share. Retail investors can bid for a lot of 21 equity shares and in multiples thereof. The IPO is expected to fetch Rs 1,014 crore at the upper price band. The public issue comprises a fresh issue of shares worth up to Rs 125 crore, and an offer for sale (OFS) of more than 1.28 crore equity shares worth Rs 889 crore by promoters and investors.

Economy

Prime Minister Narendra Modi has said that the reforms brought in by the government in the banking sector and support to the sector in every way in the last six to seven years have led to the country's banking sector in a very strong position today. He said Banks' financial health is in a much better position now. Speaking at a Conference on Creating Synergies for Seamless Credit Flow and Economic Growth in New Delhi today, Mr Modi said, there comes a time in the development journey of any nation when it takes a new resolve for a new leap. The Prime Minister said, then the strength of the entire nation comes together for the fulfilment of those resolves. He said, now the ground is solid for a leap and the target is set.

He said, Banks are playing a key role in the nation's development.

Mr Modi asserted that banks have sufficient liquidity and highlighted how opening up of Jan Dhan accounts aided inclusion. He said, the present government recovered five lakh crore rupees after 2014. He said, the government fought every challenge that existed before 2014.

During COVID, a dedicated Stress Asset Management Vertical was constituted in the country.

He said, with such decisions, today banks' resolution and recovery is better, their condition is strengthening and inherent strength is being found within it.

Mr Modi underlined that the present government addressed the NPAs issue, recapitalised banks, enhanced their strength, brought reforms like IBC, reformed laws, strengthened the Debt Recovery Tribunal.

Earlier, RBI Governor Shaktikanta Das said, banks should now focus on the sunrise sector, new sectors and MSMEs. He said, there is a need for an optimal balance between mechanism, job creation and higher productivity.

The Commerce Department released a report on Wednesday showing an unexpected decline in new residential construction in the US in October although the report also showed a bigger than expected spike in building permits. The report showed housing starts slid by 0.7 per cent to an annual rate of 1.520 million in October after tumbling by 2.7 per cent to a revised rate of 1.530 million in September. The Commerce Department said building permits spiked by 4 per cent to an annual rate of 1.650 million in October after plummeting by 7.8 per cent to a revised rate of 1.586 million in September.